October 22, 2001
To the Pacifica National Board:
Pacifica Radio is effectively insolvent. Whether or not reserves exist on paper, the simple fact is that our broadcast operations are collapsing because of a financial crisis at the Pacifica National Office.
Despite endless promises, no accounting of the financial state of this network has been made available to station managers. It is impossible to assess our true financial status, but we are effectively and operationally bankrupt, despite significant at least on paper station reserves and surpluses.
For some months, crucial bills have gone unpaid by the Pacifica Finance Office.
Since September 1, KPFK has been broadcasting at minimal power using our standby system because payments for our transmitter project have not been made.
Bills that are months overdue include utilities, engineers, contractors, strategic vendors, and news services. Virtually every station credit account has been closed or put on hold. Even line- level staff members who fronted personal money because our accounts were closed have gone un-reimbursed for months.
Employees owed as much $1200 are simply ignored. We can no longer use Fed Ex, pick up parts for repairs and installations or go to Staples for copy paper. We have had no petty cash. Our phones have come within one hour of shut-off. Our new antenna cannot be installed because it cannot be delivered because of unpaid transfer and storage bills.
Repeated pleas have been made to the office of the Executive Director to remedy this emergency and, equally important, to clarify the financial standing of the network. We have gotten only unfulfilled promises.
This crisis is untenable and unforgivable.
In the face of this crisis, the Executive Director has demonstrated gross negligence and irresponsibility. As CEO of Pacifica, she holds ultimate responsibility for this crisis.
We are calling for an immediate emergency intervention in these matters.
KPFK staff is planning a fall fund drive to commence on October 31. But we, the undersigned staff, volunteers and management employees want to make clear that we cannot and will not go ahead with those plans unless this intervention takes place.
In the next few days, all our bills must be brought up to date and there must be:
1> Full access to information about KPFK s accounts, endowments and reserves, plus an accounting for monies diverted from KPFK to other Pacifica operations.
2> A report on the whereabouts of KPFK s $800,000 project fund.
3> Full disclosure of the financial state of the network, including full reports on national unit expenses, income and debts.
4> Preliminary steps toward a system of full accountability for Pacifica s national units.
We understand that our refusing to fund raise could provoke dire consequences for the KPFK, Pacifica, and for ourselves. But to sit back and ignore the current slide into oblivion would be worse.
We find it inappropriate and ultimately immoral to ask our listeners to donate another penny to this organization as long as it refuses to account for the funds received. It is counter to our mission to do otherwise. Until this situation is remedied, we simply cannot conduct a fund drive. This emergency demands immediate attention.
In the next few days, we need to have a conference call between the KPFK staff, the Executive Director, Board Chair and Treasurer. If this does not occur and if staff is not provided with any and all financial information required for our operations, we will call publicly for the removal of Bessie Wash as Executive Director. We will demand that an interim emergency administrator be empowered to replace her and that full financial statements for the Foundation be made available. As you know, KPFK staff and management have been forthright in directing any of our concerns and criticisms directly to the Board or to our National staff. So far, we have kept these internal disputes behind the scenes because we believe that to do otherwise compromises our programming mission. However, at this critical juncture, we demand immediate and resolute action. For us as staff, or you as Board members, to accept anything less would be fiscal malfeasance.
We are at your disposal to seek acceptable and effective solutions.
Signed,
KPFK Staff